Siem Offshore turn loss-making - expects challenging market "for several years"Company News // October 29, 2015
Siem Offshore says the North Sea spot market for AHTS vessels and PSV vessels "has continued the negative trend from the previous quarters, with softening rates and decreasing utilization."
The company noted that owners continue to put vessels into lay-up and additional lay-ups are expected.
"We see similar trends worldwide and the outlook for the OSV market is expected to remain challenging for several years," said the company.
One bright spot saw Siem Offshore Contractors experience an increase in tendering activity for EPIC-based contracts for both medium- and high-voltage power cables in the offshore windfarm market with scheduled marine installation activities in 2017, 2018 and 2019.
Announcing the company's third quarter results, Siem Offshore said it operating revenues of US$82.0 million. This was well down compared with the same period in 2014, US$153.4 million.
The operating margin was US$24.9 million (2014: US$59.3 million) and the operating margin as a percentage of revenues was 30 per cent (2014: 39 per cent).
The company made a loss of US$2.0 million compared with a US$40.1 million profit in the same period in 2014, after depreciation and amortisation expenses of US$28.5 million (2014: US$4.7 million).
Taking all other income and expenses into account the company made a loss of US$8.9 million in the quarter.